• Firm-Specific Capital and Welfare 

      Sveen, Tommy; Weinke, Lutz (Working Papers;4/2006, Working paper, 2006)
      What are the consequences for monetary policy design implied by the fact that price setting and investment takes typically place simultaneously at the firm level? To address this question we analyze simple (constrained) ...
    • Firm-Specific Capital, Nominal Rigidities, and the Taylor Principle 

      Sveen, Tommy; Weinke, Lutz (Working Papers;6/2006, Working paper, 2006)
      In the presence of firm-specific capital the Taylor principle can generate multiple equilibria. Sveen and Weinke (2005b) obtain that result in the context of a Calvo-style sticky price model. One potential criticism is ...